THE MAINE GROWTH INDEX 2025: THE TOP FIV TOWNS REDEFINING GROWTH
Market Context: A Year of Recalibration
After several years defined by extreme inventory shortages, rapid price escalation, and intense buyer competition, 2025 marked a meaningful shift in the housing market — both nationally and here in Maine. Increased inventory, longer days on market, and flatter price growth signaled a transition toward balance rather than boom or bust.
Nationally, active inventory rose more than 16% year over year, price growth largely stabilized, and nearly 40% of listings experienced price reductions. Buyers gained more choice and leverage, while sellers faced a market that rewarded accurate pricing, strong presentation, and local expertise over urgency alone.
Against this backdrop of normalization, pockets of Maine continued to outperform. Certain towns didn’t just hold steady — they surged. The Maine Growth Index was created to identify and rank those standouts.
What Is the Maine Growth Index?
The Maine Growth Index is an annual, data-driven ranking of Maine municipalities based on year-over-year growth in residential real estate sales activity.
Using finalized MLS data, the Index measures:
- Percentage increase in closed residential sales compared to the prior calendar year
- Minimum sales thresholds to ensure meaningful comparisons
Median sale price trends are included for additional context but do not influence rankings. The Index is published only after year-end data is finalized to ensure accuracy and consistency.
This report highlights The Top FIV Towns — the five Maine municipalities that posted the strongest year-over-year sales growth.
Rankings of Towns with 100+ Units Sold
The Top FIV Towns: What Stands Out
#1 Standish
#2 Gray
Gray’s central location and quality-of-life appeal continued to attract both families and retirees. Sales growth was paired with one of the strongest median price gains in the Index, reinforcing its position as a high-demand hub with accessibility to Portland, Windham, and Freeport.
#3 Westbrook
Westbrook’s momentum reflects its evolution into one of Southern Maine’s most dynamic small cities. Proximity to Portland, a revitalized downtown, and relatively stable pricing supported elevated transaction volume without significant price pressure.
#4 Falmouth
A consistently resilient market, Falmouth posted strong sales growth despite higher price points. Demand remained steady for its coastal character, top-tier schools, and suburban access to Portland.
#5 Augusta
Augusta rounded out the Top FIV with solid sales growth anchored by its role as Maine’s capital. While median prices softened slightly, transaction volume increased, signaling steady buyer engagement in a value-oriented market.
What the Data Tells Us
The Maine Growth Index highlights how localized demand drove results in 2025. Even as inventory rose and pricing pressure eased statewide, select towns continued to outperform based on lifestyle appeal, accessibility, and relative affordability.
Just Outside the Top FIV
Several towns narrowly missed the Top 5 but still demonstrated meaningful momentum, including Rockland, Biddeford, Cumberland, Yarmouth, and South Portland. These markets remain highly active and continue to warrant close attention heading into 2026.
Looking Ahead
As Maine moves further into a balanced market environment, growth is becoming increasingly town-specific. The Maine Growth Index serves as a snapshot of where buyer demand proved most resilient — and where opportunity continues to emerge as conditions normalize.
© 2026 FIV Realty Co. Maine. All rights reserved.
The Maine Growth Index TM is aproprietary market analysis prepared by KimTarbox.
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